OMERS Announces First Italian Investment, Acquiring Grandi Stazioni Retail
Canadian public pension fund OMERS and DWS Group reached a deal to acquire Grandi Stazioni Retail, the two investors said on Tuesday.
The deal values Grandi Stazioni Retail, owned by Antin Infrastructure Partners, ICAMAP and Borletti Group, at between €1.2- and €1.3-billion ($1.8- and $1.9-billion), according to a person with knowledge of the deal.
The company manages the commercial and advertising leasing spaces in 14 railway stations in Italy. The stations receive more than 800 million visitors a year, OMERS, or Ontario Municipal Employees Retirement System, and DWS said in a joint statement.
“We’re delighted to acquire Grandi Stazioni Retail, which marks our entry into Italy,” said Alastair Hall, head of Europe at OMERS Infrastructure.
Asset manager DWS has multiple investments in rail transportation, including Akiem, Streem and Corelink, as well as in Italian infrastructure via its investments in Gruppo SAVE, Rimorchiatori Mediterranei and Ergéa, the companies said.
The deal is expected to be completed by the end of the year.
Earlier today, OMERS issued a press release announcing its first Italian investment:
August 6, 2024 – OMERS Infrastructure and an Infrastructure Investment fund managed and advised by DWS Group today announced that they have signed an agreement to acquire 100% of Grandi Stazioni Retail from Antin Infrastructure Partners, ICAMAP and Borletti Group.
Grandi Stazioni Retail manages the entirety of commercial and advertising spaces in 14 of Italy's major railway stations and hubs for the high-speed rail network, which collectively receive over 800 million visits a year. The stations include over 800 commercial units, totaling around 190,000 Sqm of leasable space, and over 1,800 media assets.
The investment becomes OMERS first-ever in Italy, its 19th in Europe, and 14th transportation asset globally. DWS has a strong track record in rail transportation, including its investments in Akiem, Streem and Corelink, as well as in Italian infrastructure via its investments in Gruppo SAVE, Rimorchiatori Mediterranei and Ergéa.
Michael Hill, Executive Vice President and Global Head of Infrastructure, OMERS said: “We are delighted to be partnering with DWS to acquire Grandi Stazioni Retail. The acquisition is highly consistent with the OMERS Infrastructure strategy and will be an excellent complement to our world-class portfolio of infrastructure investments.”
Alastair Hall, Head of Europe, OMERS Infrastructure, said: “We’re delighted to acquire Grandi Stazioni Retail, which marks our entry into Italy and further expands OMERS presence in Europe. The investment presents us with an exciting opportunity to grow our exposure to the resilient and dynamic European rail sector. We are hugely impressed by Grandi Stazioni Retail’s management team, their commercial strategy and successful track-record of growth.”
Hamish Mackenzie, Global Head of Infrastructure at DWS, said: “This acquisition is a testament to our commitment to investing in high-quality infrastructure assets. Grandi Stazioni Retail offers a unique platform that aligns with our long-term vision for growth and providing essential services to the passengers and communities served by our portfolio companies, as well as a strong alignment with the key sustainability trend of reduction of transportation emissions, a theme supported by local and European policies. We are particularly impressed by the Grandi Stazioni Retail’s strategic direction and operational excellence of the management team, led by Alberto Baldan. We are excited to partner with OMERS and leverage our expertise and resources to further enhance the value of this asset and ensure it continues to serve as a vibrant travel hub for connectivity.”
The transaction is expected to be completed by the end of the year, subject to certain customary closing conditions and regulatory approvals.About OMERS Infrastructure
manages infrastructure investments globally on behalf of OMERS, the defined benefit pension plan for municipal employees in the Province of Ontario, Canada, and third-party investors through its Strategic Partnership Program. OMERS Infrastructure manages approximately C$36 billion, including capital invested on behalf of OMERS and third parties, in approximately 30 investments located in North America, Western Europe, India and Australia, and across sectors including energy, digital and transportation. OMERS Infrastructure has employees in Toronto, New York, London, Amsterdam, Singapore and Sydney.
About DWS Group
DWS Group (DWS) with EUR 933bn of assets under management (as of 30 June 2024) aspires to be one of the world's leading asset managers. Building on more than 60 years of experience, it has a reputation for excellence in Germany, Europe, the Americas and Asia. DWS is recognized by clients globally as a trusted source for integrated investment solutions, stability and innovation across a full spectrum of investment disciplines.We offer individuals and institutions access to our strong investment capabilities across all major liquid and illiquid asset classes as well as solutions aligned to growth trends. Our diverse expertise in Active, Passive and Alternatives asset management – as well as our deep environmental, social and governance focus – complement each other when creating targeted solutions for our clients. Our expertise and on-the-ground knowledge of our economists, research analysts and investment professionals are brought together in one consistent global CIO View, giving strategic guidance to our investment approach.
DWS wants to innovate and shape the future of investing. We understand that, both as a corporate as well as a trusted advisor to our clients, we have a crucial role in helping to navigate the transition to a more sustainable future. With approximately 4,600 employees in offices all over the world, we are local while being one global team. We are committed to acting on behalf of our clients and investing with their best interests at heart so that they can reach their financial goals, no matter what the future holds. With our entrepreneurial, collaborative spirit, we work every day to deliver outstanding investment results, in both good and challenging times to build the best foundation for our clients’ financial future.
It is worth reading a little more about Grandi Stazioni Retail:
I note the following:
To become the ideal hub for brands that, with us, can experience unique communication and business opportunities in extraordinary locations in terms of position and flows. Thanks to the 750 mln visitors per year (now 800 mln per year), we are at the top of travel retail. We offer brands the possibility to meet our high-potential customer target, gain maximum visibility thanks to our high-impact adv installations and get privileged access to a deeper look into our flows, counting on the big data available to us.
And this on their strategy:
At the center of our stations we put the travelers’ comfort, with innovative specific services every day, all year round. To the people who love to be on the move we offer comfortable areas that never cease to be appealing, plus the chance to discover what the city offers. The quality of the whole experience is crucial in our challenge to turn visitors into loyal customers.
This is a great investment for OMERS Infrastructure and their strategic co-investment partner, DWS.
As Michael Hill, Executive Vice President and Global Head of Infrastructure, OMERS stated in the press release: “The acquisition is highly consistent with the OMERS Infrastructure strategy and will be an excellent complement to our world-class portfolio of infrastructure investments.”
And Alastair Hall, Head of Europe, OMERS Infrastructure, said: “We’re delighted to acquire Grandi Stazioni Retail, which marks our entry into Italy and further expands OMERS presence in Europe. The investment presents us with an exciting opportunity to grow our exposure to the resilient and dynamic European rail sector. We are hugely impressed by Grandi Stazioni Retail’s management team, their commercial strategy and successful track-record of growth.”
Key words there: resilient and dynamic European rail sector.
Recall, back in 2019, OMERS Infrastructure made an investment in VTG, a market leader in private rail freight wagon leasing in Europe. It provides essential transportation infrastructure with a diverse portfolio of approximately 94,000 wagons to a diversified customer base of over 1,000 customers.
At the time, Ralph Berg, then Global Head of Infrastructure and now CIO of OMERS said: “We are happy to have completed our second infrastructure investment in Germany. VTG is a strong addition to our growing global portfolio and fits our strategy of actively supporting stable, industry-leading infrastructure businesses to help us meet our long-term pension obligations.”
I bring the VTG deal up because it's similar in nature but obviously different.
Alright, I’ll be back next week to cover mid-year results.
Below, Marco Orlandi, formerly Operations & Product Innovation Manager – Media & Advertising with Grandi Stazioni Retail, details the company’s journey to become a data-driven company, during Quividi’s ISE 2018 Partner Conference.
He explains the then new revenue model based on “Selling Audiences” of Grandi Stazioni Retail’s DOOH network and how big data is enabling unexplored connections between DOOH screens and venues (March 2018).
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